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Promotional Mix
                     Prepared by


                     Mehul Rasadiya
K.K.Parekh Institute of Management of Studies
Objectives
A. Describe the elements of the
   promotional mix.

B. Explain factors affecting the selection
   of a promotional mix.
Objective A
Describe the elements of the
     promotional mix.
Purposes of Promotion
To tell consumers about a company’s …




                Ideas
              Services
               Images
               Goods
Purposes of Promotion
 To persuade consumers to buy
Promotion’s Recipe
         for Success:
       Mix various
     communication
 activities together and
   serve to potential
customers until desired
 outcome is achieved.
Communication Techniques
• Advertising                       Traveler Magazine
                     Flynn
• Personal selling   The bikes
                     the pros
• Publicity          use.             The Top 5
• Sales promotion                     Airlines!


                                 25% Off
                                 Coupon
The Combination, or Blend, of Marketing
Communication Channels Is Called the...
Advertising
Any paid form of nonpersonal presentation of ideas,
            images, goods, or services




 The most visible element of the promotional mix
• Actual cost of advertisement is
  quite high.
• Since many people receive the
  message, the per contact cost
  is very low.


         The New Barchetta
Diamonds from
       Desmond’s                           Say No to Drugs.
       Jewelers are a girl’s
       best friend.




                               Services
                                 Ideas
                               Images
                                Goods

                                           At Techco,
                                              we’re
                                           friendly to
                                               our
                                           customers
The Vet for Your                             and the
      Pet                                 environment.
Advertising
Messages can be delivered by:

                 •   Television
                 •   Radio
                 •   Newspapers
                 •   Magazines
                 •   Direct mail
                 •   Outdoor advertisements
                 •   Directories
                 •   The Internet
Personal Selling
   Determines client needs/wants and responds through
   planned, personalized communication that influences
   purchase decisions and enhances future business
   opportunities
                                          You might want
 My budget won’t                        to consider leasing
                                          Are you planning
allow me to replace                    computers. You can
                                           on replacing all
  them all at once,                       get free service
                                          of your computers
 but I want them to                      and upgrade to a
                                               at once?
   be compatible.                     newer model whenever
                                             you want!
Selling Disadvantage
             Selling Advantages

I like the sound                            We do carry a
 of this stereo,                           bookshelf model
but I think it’s a On a per contact basis, with similar
 little large for
my dorm room.   selling is the most expensive quality.
                                            sound

                 form of promotion.

               • Immediate feedback
               • Flexibility
Publicity
• Any nonpersonal presentation of ideas, goods, or
  services that is not paid for by the company or
  individual which benefits from or is harmed by it
• Many consumers pay close attention to publicity.
   – Feel publicity has more credibility because it is not a
     commercial message
   – View publicity as news



   Example: Mention of a company’s charitable activities
   in print or broadcast media
Ways the Internet Can Be Used
  as a Source of Publicity


    “Tae-Bo has really changed my life. I’ve lost
    weight, toned-up, and feel better than ever.”
                               -Susie Wells, CA




 A company web site can be used to obtain and display
 positive feedback.
Ways the Internet Can Be Used
      as a Source of Publicity

                      OnlineNews.com
                     Car shopping on the web
                       Buying a car on the web just got
                       easier! Autobytel.com will help you
                       get the financing, pick out the model,
                       color and extras. Then they provide a
                       quote from a local dealer. All at the
                       touch of a keypad.




A business’s goods, services, or web site might be mentioned in an
Internet newsgroup.
Ways the Internet Can Be Used
      as a Source of Publicity



             LINK TO ACME.COM


A company might agree to provide a link to another business’s web
site in exchange for the same consideration.
Sales Promotion
• Promotional activities other than advertising, personal
  selling, and publicity which stimulate purchases
• Sales promotion activities include:




             Visual merchandising or displays
                 ProductCoupons
                     Noveltyrebates
                     Fashion shows
                     Instant items
                     Free samples
                       Trade shows
                        Contests
                         Exhibits
                         demonstrations
• Plays a key role in
                obtaining and keeping
                customers
Importance
              • Enables businesses to
   of the       communicate effectively
Promotional     with customers
    Mix       • Informs consumers about
                goods/services and
                persuades them to buy
Objective B
 Explain factors affecting the
selection of a promotional mix.
Marketers Try To Create the
          Ideal Blend of Promotional
         Activities for Their Businesses.
                 Publicity
    Personal                   Sales
     selling
                             promotion
Advertising magic formula that     Must decide which methods will
        No
                                  best reach potential customers and
         marketers use to help
                                    communicate desired message
        design promotional mix
                                 Hard to determine effectiveness of the
                                    different promotional methods
Factors Affecting the Selection of a
           Promotional Mix

Must be carefully
analyzed before
marketers decide when
and where to invest
promotional funds


                   Product’s target
                      Product’s
                    Good, service,
                     Distribution
                    image, or idea
                      company
                      channels
                       market
Good, Service, Image, or Idea
               • Type of product




Convenience goods                     Shopping goods




                    Specialty goods
Good, Service, Image, or Idea

                                         ProductsOFF are
                                             10% which
                                            on all small
                                         high-tech, require
                                            appliances
                                         demonstration, are
Inexpensive and
self-service products           HARRY’S  expensive, or require
                                         installation should be
                              HARDWARE
can rely on advertising
and sales promotion.                     promoted through
                                         personal selling.
                    This computer is
                   perfect for you. It
                  has all the software
                  pre-installed and a
                  left-handed mouse!

                     Product nature
Good, Service, Image, or Idea
                        When you are on-the-go…




                                            New and
                                           Improved!
                    …it’s Breakfast-To-Go
                    Each pocket provides
                    you a delicious
                    breakfast in just
                               Maturity
                    two minutes!



               Growth                                  Declining

Introductory            Stage of life cycle
Product’s Target Market
        Geographical Location
        Numberof Consumer
         Type of Consumers
                                 Spread
 Consumer
  Close
   Few           vs.           Industrial
                                  Many
                                 Over a
 Together
  Market
Consumers                      Consumers
                                Market
                               Wide Area
              Advertising
            Sales Promotion
               Publicity
            Personal Selling
Distribution Channel
                   INTERMEDIARY BLVD.   DIRECT AVE.



The promotional
mix selection is   Requires personal selling
                      Requires personal
 affected by the    selling and advertising
   path that a
 product takes.
Product’s Company
                Businesses often rely on previous
                  use of promotional methods.




       Think small.                         Less flower. More power.




1960            1970           1980        1990             2000

                       Historical Perspective
Product’s Company
                          Example:

Today, the Wal-Mart corporation Wal-Mart started as one small
has increased its promotional mix store in Arkansas. In Wal-Mart’s
to include television, radio,     early years, local newspaper
newspapers, special sales bulletins,
                                  advertising and personal selling
and a Wal-Mart web site in order were all that the small company
to promote its national network. could afford.



                     Available Funds
Product’s Company
                   Competition




       Tony’s Pizza              Ange’s Pizza
        Kids eat                       Free kids’
         free!                          meals!




Competing businesses use similar promotional
mixes and tend to follow the leader.
MarkED

   Acknowledgements
      Original Developer
Christopher C. Burke, MarkED
        Version 1.0
     Copyright 2000
  MarkED Resource Center
Digital-based photography sources:

ADOBE IMAGE LIBRARY;
Retail
Obj. A: #RET_050
Photos copyright Eyewire Inc.
833 Fourth Ave. SW, Suite 800 Calgary, AB, Canada

ART EXPLOSION 250,000;
Obj. A: #MODEL005
Nova Development Corporation
23801 Calabasas Road, Suite 2005
Calabasas, CA 91302
Digital-based photography sources:

PHOTODISC, INC.;
Business & Occupations Vol. 7
Obj. A: #7067
Photos copyright PhotoDisc, Inc.
2013 Fourth Ave., Seattle, WA 98121


T/Maker Company;
ClickArt
Obj. A: #PRFTOT007
Photos copyright T/Maker Company; 1390 Villa Street: Mountain View, CA
94041; tel. (415) 962-0195. Copyright 1994, all rights reserved. ClickArt is a
registered trademark of T/Maker Company. ClickArt Images copyright 1984-
1994 by T/Maker Company. All rights reserved.
Copyright:
All photographic digital images on this CD are owned by the
aforementioned photographic resources or their licensors and
are protected by the United States copyright laws, international
treaty provisions, and applicable laws. No title to or intellectual
property rights to the images on this CD are transferred to you.
These sources retain all rights and are not to be used, digitally
copied, transferred, or manipulated in any way. To do so is a
violation of federal copyright laws.
Promotional mix

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Promotional mix

  • 1. Promotional Mix Prepared by Mehul Rasadiya K.K.Parekh Institute of Management of Studies
  • 2. Objectives A. Describe the elements of the promotional mix. B. Explain factors affecting the selection of a promotional mix.
  • 3. Objective A Describe the elements of the promotional mix.
  • 4. Purposes of Promotion To tell consumers about a company’s … Ideas Services Images Goods
  • 5. Purposes of Promotion To persuade consumers to buy
  • 6. Promotion’s Recipe for Success: Mix various communication activities together and serve to potential customers until desired outcome is achieved.
  • 7. Communication Techniques • Advertising Traveler Magazine Flynn • Personal selling The bikes the pros • Publicity use. The Top 5 • Sales promotion Airlines! 25% Off Coupon
  • 8. The Combination, or Blend, of Marketing Communication Channels Is Called the...
  • 9.
  • 10. Advertising Any paid form of nonpersonal presentation of ideas, images, goods, or services The most visible element of the promotional mix
  • 11. • Actual cost of advertisement is quite high. • Since many people receive the message, the per contact cost is very low. The New Barchetta
  • 12. Diamonds from Desmond’s Say No to Drugs. Jewelers are a girl’s best friend. Services Ideas Images Goods At Techco, we’re friendly to our customers The Vet for Your and the Pet environment.
  • 13. Advertising Messages can be delivered by: • Television • Radio • Newspapers • Magazines • Direct mail • Outdoor advertisements • Directories • The Internet
  • 14. Personal Selling Determines client needs/wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities You might want My budget won’t to consider leasing Are you planning allow me to replace computers. You can on replacing all them all at once, get free service of your computers but I want them to and upgrade to a at once? be compatible. newer model whenever you want!
  • 15. Selling Disadvantage Selling Advantages I like the sound We do carry a of this stereo, bookshelf model but I think it’s a On a per contact basis, with similar little large for my dorm room. selling is the most expensive quality. sound form of promotion. • Immediate feedback • Flexibility
  • 16. Publicity • Any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual which benefits from or is harmed by it • Many consumers pay close attention to publicity. – Feel publicity has more credibility because it is not a commercial message – View publicity as news Example: Mention of a company’s charitable activities in print or broadcast media
  • 17. Ways the Internet Can Be Used as a Source of Publicity “Tae-Bo has really changed my life. I’ve lost weight, toned-up, and feel better than ever.” -Susie Wells, CA A company web site can be used to obtain and display positive feedback.
  • 18. Ways the Internet Can Be Used as a Source of Publicity OnlineNews.com Car shopping on the web Buying a car on the web just got easier! Autobytel.com will help you get the financing, pick out the model, color and extras. Then they provide a quote from a local dealer. All at the touch of a keypad. A business’s goods, services, or web site might be mentioned in an Internet newsgroup.
  • 19. Ways the Internet Can Be Used as a Source of Publicity LINK TO ACME.COM A company might agree to provide a link to another business’s web site in exchange for the same consideration.
  • 20. Sales Promotion • Promotional activities other than advertising, personal selling, and publicity which stimulate purchases • Sales promotion activities include: Visual merchandising or displays ProductCoupons Noveltyrebates Fashion shows Instant items Free samples Trade shows Contests Exhibits demonstrations
  • 21. • Plays a key role in obtaining and keeping customers Importance • Enables businesses to of the communicate effectively Promotional with customers Mix • Informs consumers about goods/services and persuades them to buy
  • 22. Objective B Explain factors affecting the selection of a promotional mix.
  • 23. Marketers Try To Create the Ideal Blend of Promotional Activities for Their Businesses. Publicity Personal Sales selling promotion Advertising magic formula that Must decide which methods will No best reach potential customers and marketers use to help communicate desired message design promotional mix Hard to determine effectiveness of the different promotional methods
  • 24. Factors Affecting the Selection of a Promotional Mix Must be carefully analyzed before marketers decide when and where to invest promotional funds Product’s target Product’s Good, service, Distribution image, or idea company channels market
  • 25. Good, Service, Image, or Idea • Type of product Convenience goods Shopping goods Specialty goods
  • 26. Good, Service, Image, or Idea ProductsOFF are 10% which on all small high-tech, require appliances demonstration, are Inexpensive and self-service products HARRY’S expensive, or require installation should be HARDWARE can rely on advertising and sales promotion. promoted through personal selling. This computer is perfect for you. It has all the software pre-installed and a left-handed mouse! Product nature
  • 27. Good, Service, Image, or Idea When you are on-the-go… New and Improved! …it’s Breakfast-To-Go Each pocket provides you a delicious breakfast in just Maturity two minutes! Growth Declining Introductory Stage of life cycle
  • 28. Product’s Target Market Geographical Location Numberof Consumer Type of Consumers Spread Consumer Close Few vs. Industrial Many Over a Together Market Consumers Consumers Market Wide Area Advertising Sales Promotion Publicity Personal Selling
  • 29. Distribution Channel INTERMEDIARY BLVD. DIRECT AVE. The promotional mix selection is Requires personal selling Requires personal affected by the selling and advertising path that a product takes.
  • 30. Product’s Company Businesses often rely on previous use of promotional methods. Think small. Less flower. More power. 1960 1970 1980 1990 2000 Historical Perspective
  • 31. Product’s Company Example: Today, the Wal-Mart corporation Wal-Mart started as one small has increased its promotional mix store in Arkansas. In Wal-Mart’s to include television, radio, early years, local newspaper newspapers, special sales bulletins, advertising and personal selling and a Wal-Mart web site in order were all that the small company to promote its national network. could afford. Available Funds
  • 32. Product’s Company Competition Tony’s Pizza Ange’s Pizza Kids eat Free kids’ free! meals! Competing businesses use similar promotional mixes and tend to follow the leader.
  • 33. MarkED Acknowledgements Original Developer Christopher C. Burke, MarkED Version 1.0 Copyright 2000 MarkED Resource Center
  • 34. Digital-based photography sources: ADOBE IMAGE LIBRARY; Retail Obj. A: #RET_050 Photos copyright Eyewire Inc. 833 Fourth Ave. SW, Suite 800 Calgary, AB, Canada ART EXPLOSION 250,000; Obj. A: #MODEL005 Nova Development Corporation 23801 Calabasas Road, Suite 2005 Calabasas, CA 91302
  • 35. Digital-based photography sources: PHOTODISC, INC.; Business & Occupations Vol. 7 Obj. A: #7067 Photos copyright PhotoDisc, Inc. 2013 Fourth Ave., Seattle, WA 98121 T/Maker Company; ClickArt Obj. A: #PRFTOT007 Photos copyright T/Maker Company; 1390 Villa Street: Mountain View, CA 94041; tel. (415) 962-0195. Copyright 1994, all rights reserved. ClickArt is a registered trademark of T/Maker Company. ClickArt Images copyright 1984- 1994 by T/Maker Company. All rights reserved.
  • 36. Copyright: All photographic digital images on this CD are owned by the aforementioned photographic resources or their licensors and are protected by the United States copyright laws, international treaty provisions, and applicable laws. No title to or intellectual property rights to the images on this CD are transferred to you. These sources retain all rights and are not to be used, digitally copied, transferred, or manipulated in any way. To do so is a violation of federal copyright laws.